11 Small House Designs That Make Compact Homes Feel Luxurious and Spacious
By Rubaiya Karim- November 07, 2025
With millennials today embracing city living in compact spaces, a chic studio apartment or an urban townhouse often requires making the most of each inch of space without clutter. In fact, most small house designs thrive on thoughtful planning and creativity.
But how do you implement that? A mix of smart storage, functional furniture and decor hacks that can make even the smallest apartment in Bombay feel like an expansive haven. Read ahead for more ways to make your small space appear bigger!
1. Utilising smart storage hacks
Contemporary low cost small house design with smart storage solutions
Storage is the most pertinent problem in any small house. Therefore, smart storage planning, such as pull-out drawers, wall-mounted shelves, or ottomans with hidden compartments, can be extremely practical. In a low-cost, simple, small design house, floating wall racks in the kitchen can free up counter space. But, in a contemporary small house design, floor-to-ceiling built-in cabinets with sleek finishes may look more appealing.
Regardless of the style of smart storage you choose, the goal is to make sure that the space remains clutter-free and cosy while staying stylish and functional.
2. Maintain a minimalist aesthetic
Simple low cost small house design with elegant minimal interiors
In tighter spaces, less is always more. A minimalist decor ensures that a home feels airy and open rather than cramped. But how exactly do you implement minimalism without losing the cosy vibes? Stick to clean lines, neutral palettes, and thoughtfully curated decor.
Don’t overcomplicate it. Think of a simple, small house design that incorporates the aesthetic of white and wood. This will include uncluttered walls, a comfortable sofa, and a singular statement rug. Or, a chest of drawers with a couple of vases, a trinket holder, and floating walls for books. This keeps your space functional yet beautiful, without overwhelming the eye.
3. Use one statement piece to draw attention
Simple low budget small house design with warm modern interiors
This ties back to the previous point of less is more. But we all want a little drama in our homes. In a small home, it is best to let any one piece take centre stage. This can be a bold accent chair or an abstract painting. Even a simple but large bench with cosy pillows can serve as a focal point in a small home.
Focusing on a single focal element can help avoid overcrowding while making the space memorable. For instance, a luxury small house design might feature a plush velvet sofa, while a low-budget small house design could utilise a thrifted piece of artwork to draw attention to a specific space.
4. Create an illusion of space using mirrors
Beautiful low cost small house design with elegant wooden interiors
Here’s a trick designers swear by: mirrors. They instantly double the sense of space through reflecting light. Place a large mirror opposite a window, and chances are that your small living room will instantly look larger!
In the bedroom, a mirrored wardrobe or a wall of mirror panels can visually expand the room. This works beautifully in very small house design plans where space is limited but aesthetics are non-negotiable.
5. Make your furniture pull double-duty
Modern low cost small house design with functional sofa bed
In a small house, furniture should work twice as hard. This can mean sofa-cum-beds in studio apartments, nesting tables, foldable dining tables, or a coffee table that doubles as a reading nook or work desk when required.
This is great for maximising utility and adaptability for a small home. It serves more than one purpose and transitions quickly. The best small house design will always have multifunctional furniture pieces as a core element.
6. Install sliding doors and windows to maximise space-saving
Contemporary low cost small house design with stylish wooden wardrobe
Swinging doors often eat up valuable space in a smaller home. Sliding doors and windows can be game-changing in a compact home. Sleek wardrobes in bedrooms or pocket doors in bathrooms offer functionality without limiting the space further. Large sliding doors also flood your home with natural light, making even a low-cost small house design look breezy and spacious.
7. Grow a vertical garden for a touch of green
Beautiful small house design with indoor plants and natural lighting
Small homes often mean a dearth of backyard space and balconies. But that is no problem. A vertical garden or a green wall can serve as the perfect eco-friendly solution that does not eat up floor space. A wall-mounted herb garden in the kitchen, cascading plants in the living room or balcony, or succulents on tiered shelves bring the freshness indoors.
What’s better? These ideas work well in both affordable small house designs and luxury small house designs. This proves that greenery is a universal decor upgrade.
8. Brighten and widen with lighter colour schemes
Contemporary small house design with warm earthy color palette
Colour can often make or break any space. And in a smaller house, lighter tones such as whites, pastels, and soft neutrals, reflect natural light and make the home feel expansive. For example, in an L-shaped small house design, an all-white kitchen instantly makes the space look more precious. To take the decor up a notch, think about adding pops of colour or accents in the form of artwork, rugs, and storage units in a brighter shade or a different texture.
9. Maximise seating by swapping chairs for benches
Modern small house design with wooden dining space and windows
Benches maximise space-saving the best. They tuck neatly under tables when not in use, provide extra seating during a full house, and even double up as storage! Imagine a low-budget small house design dining nook with a wooden bench on one side and chairs on the other. This not only adds casualness and beauty, but it also saves space.
10. Carve out zones for specific activities
Low cost small house design with vibrant warm living interiors
Small spaces should not restrict your home from having multiple functions. Use rugs, partitions, and shelving to define zones within each room. For example, in the latest small house design, you are bound to receive an open-plan living area. This can also house a reading nook tucked into a corner, or a dining area where the rug ends. This helps create flow without sacrificing any space.
11. Install wall-mounted or hanging lights to clear up floor space
Modern small house design with elegant warm wall lighting
Bulky floor laps are a no-go in a compact home. Instead, opt for vertical wall sconces, pendant lights, or ceiling-mounted light fixtures. Not only do these free up valuable space, they also add so much charm and add to the mood. A beautiful small house design often incorporates layered lighting to make rooms warm and inviting.
Pro-tip: while we all love our trusty big overhead lights, it is always wise to keep the sconces and shades for a more sober atmosphere for hosting your weekly trivia night or family movie marathons.
The Final Word
Designing a small house is the representation of the quote “work smarter, not harder.” Whether you are aiming to design a low-cost, simple house design or planning to build the luxury small house of your dreams, clever hacks, like the ones listed above, can make the space look and feel expansive.
And while you can definitely DIY most of these, having professional design guidance can help you work more efficiently and source items with the click of a few buttons. That is why, at HomeLane, we prioritise space-savvy interiors customised to each client’s lifestyle. If you’re ready to turn your small home into a cosy and stylish abode, request a free quote today and get started!
FAQs:
1. What is the best design for a small house?
The best small house design balances functionality with style in the form of smart storage, multifunctional furniture, and minimalist layouts. These not only make your home feel bigger, but they also help save floor space and allow you to build a cosy atmosphere.
2. What are the latest small house design trends?
Some of the most common trends in designing small houses include:
Open-plan layouts
Mirror walls
Multifunctional furniture
Open kitchens
Sliding doors
Vertical gardens
3. What are some unique small house design plans in India?
In India, compact homes often have modular kitchen storage, L-shaped living rooms and halls, and open kitchens that flow into the living and dining spaces. Most of these plans are tailored to urban apartment units with less space.
4. How do you design a small house with maximum space?
Small design tweaks can make a huge difference in how you perceive the space in your compact home. To access maximum space, here are some things you could do:
Stick to lighter colour palettes
Use singular accent pieces
Opt for wall-mounted or hanging lights
Add mirrors to double the visual space
Define functional zones
Paint the walls in white or lighter colour schemes