Small Space Interior Design: Ideas for Making Room for What Matters

Aanchal Yogesh
Jun 23
6 min read

In a city like Bangalore, where homes are getting smaller and real estate is only getting more expensive, smart use of space has become more important than ever. Whether it's a compact apartment or a modest villa, making every square foot work smarter can completely transform how your home feels.

And honestly, that’s what drew me to space interior design in the first place. Not the glossy magazine look of it all, but the quiet problem-solving. The “How do I fit two kids in this room without it becoming a war zone?” kind of thinking. Or the “Can we add a study area and still have floor space for play?” kind of planning.

That’s the kind of work Yogesh and I love doing at Inner Space. And small spaces? They’re our favourite kind.

Why Small Space Interior Design Matters More Than You Think

It’s funny that people often tell us, “It’s just a small room, we’ll figure it out ourselves.” But that’s exactly the kind of space that benefits most from thoughtful space interior design.

Because in a small room, you feel every choice. Where the bed goes, how the light falls, how easily you can open a cabinet without bumping into a chair. These little things either make your day smoother or slowly drive you up the wall.

Design isn’t just about fitting things in. It’s about making a space feel light, calm, and easy to use. It’s about hiding the mess, giving everything a place, and somehow making a 10x10 room feel like it breathes.

Real-Life Small Space Interior Design Ideas That Worked

Here are some practical, real-life design ideas we’ve used in our projects to help small homes feel more spacious, functional, and beautiful.

How to Design a Functional Kids’ Room in a Small Space

If you're trying to fit two children into one small room—or even make a single child's room serve more than one purpose—the key is to design around real needs, not just furniture sizes.

Start by thinking in zones: sleep, study, storage, and play. Once those are clear, the layout gets easier.

Cozy room with a bunk bed and storage; striped bedding and floral pillow. Light wood, green walls with blue squares, warm atmosphere.

Bunk bed with striped bedding in wood finish. Bright green wall with blue squares. Wooden stairs with drawers. Cozy, tidy vibe.

In one of our projects, we suggested an alternative to the usual bunk bed setup. Regular bunks may look space-efficient, but they’re not always the most comfortable—especially when it comes to changing sheets or when an adult needs to climb up.

Instead, we designed a layout with a loft bed above and a second bed tucked below.

This gave each child their own defined sleeping space without stacking them directly one over the other. The stairs to the upper bed were designed with built-in drawers for toys and clothes—maximising function without cluttering the room. If you're working with limited space and two kids, this kind of staggered setup can feel much more open and practical than a classic bunk.

In the same room (you’ll see it in the image with the built-in desk and shelves), the focus was on combining storage and study space without crowding the floor. We designed a full-length wall unit that holds wardrobes, drawers, open shelves, and a study table where two can sit side by side—or across from each other if a parent wants to join. When everything flows along one wall, the rest of the room feels open and clear.

If you’re designing a room for one child, think about how the space can support more than just sleep. In the room shown here with the space-themed artwork, the child didn’t need a second bed, but we still added one. Why? Because he loved reading, and we turned that second bed into his personal reading nook. He dreams of becoming an astronaut, so we painted a custom mural on the wall—complete with planets, stars, and a little astronaut whose helmet shows his own face. That bed isn’t about function—it’s about joy. And now it’s his favourite place in the house.

A custom mural with a little astronaut whose helmet shows the face of the kid. — A custom mural with a little astronaut whose helmet shows *the face of the kid.*

Second bed that doubles as a reading nook.

The takeaway? Don’t start with furniture. Start with the child. What do they need? How do they spend their time? One child might want a quiet corner to draw, another might need extra storage for craft supplies. The best small space interior design doesn’t follow a formula—it follows the person.

We’ve also seen how, in many homes, a single room needs to serve multiple purposes—and with the right design, it absolutely can.

One Room, Many Roles: Smart Small Space Interior Design Ideas

In smaller homes, one room often needs to do more than one job—be a bedroom, a study, a place to pray, or just unwind. With smart small space interior design ideas, it’s possible to bring all these needs together without making the room feel crowded.

Image 1: Built-in unit includes wardrobes, drawers, a desk, bookshelves and lot more.

In the same bedroom, we added a compact console that looks like a fireplace but cleverly folds out into a full ironing board (see image). It saves space and avoids the need for a separate utility zone.

In the bedroom shown in Image 1, a single built-in unit includes wardrobes, drawers, a desk, bookshelves, and a puja nook—all in one clean line. It keeps the room open while covering a lot of everyday functions.

Hidden ironing board that looks like fireplace. — Hidden ironing board that looks like fireplace

window is transformed into a cozy bench, perfect for reading, relaxing, or just enjoying the view and the built in furniture extends to the pooja on the right.

And in Image 3, the window is transformed into a cozy bench, perfect for reading, relaxing, or just enjoying the view and the built in furniture extends to the pooja on the right.

These smart small space interior design ideas help your room work harder while still feeling calm and beautiful.

How to Add a Dining Space When There’s No Dining Room

Not every home has a formal dining area—but that doesn’t mean you have to eat on the sofa or squeeze plates onto the kitchen counter. With a bit of planning, you can create a cozy dining nook that fits right into your layout without feeling like an afterthought.

In the first home (see Image 1), there was no separate dining area. The kitchen opened directly into the living space, and instead of squeezing in a table, we added a clean, compact island with seating. This acted as both a prep counter and a breakfast table. Because it was kept narrow and placed strategically, it didn’t block movement through the house. Pendant lighting above added warmth, turning it into a cozy spot for everyday meals.

In another home (Image 2), we created a formal dining corner right off the living room by designing a dark wood wall panel with built-in lighting and a ledge for display. This defined the space without needing any partitions. The table seats four comfortably, and the whole setting feels intimate without taking up much floor area.

And then there’s the bright orange dining nook you’ll see in Image 3. Here, the client wanted something casual and slightly fun. We custom-built a curved bench to tuck into the corner and paired it with a sturdy wooden table. The colours brought energy into the room, and the layout made it perfect for relaxed family meals—or even a weekend board game session.

Each home had different needs, and every layout was tailored to match their routine. That’s what makes small space interior design so rewarding—there’s no single solution, but there’s always a way to make it work.

How to Make a Small Space Feel Bigger with Light and Colour

One of the most effective ways to make a small room feel more spacious is by using thoughtful combinations of light, colour, and material. When planned well, these details can completely shift the way a space feels without changing its size.

Take this guest bedroom (see image). The layout is compact, yet the room feels calm and inviting. We used soft-toned wallpaper to add texture without overwhelming the walls. The upholstered headboard in a warm, suede-like finish adds depth while staying gentle on the eyes. The overall palette stays grounded in creams, browns, and taupes, helping the room feel cohesive and breathable.

small guest room designed to look open and spacious

If your room feels tight, try softening the colour scheme, reducing visual noise, and choosing surfaces that reflect light. You don’t need more space. You just need it to feel like it flows better.

What Thoughtful Small Space Interior Design Really Gives You

The truth is, small spaces can be frustrating. But they can also be clever, calm, and really satisfying to live in if they’re designed well. You don’t need more space. You just need the space to work better for you. That’s what space interior design is all about.

So if you’re staring at a room thinking, “What do I even do with this?”. You’re not alone. We’d love to help you figure it out.

Let’s make your small space feel like the best part of your home.