This is a nice-looking living room with smaller rug. Perhaps the key is to frame the rug with sofas / sofa and armchair combo / sofa and the window. And another trick is to fill up the room so the size doesn't look awkward.
Excellent Tight House with Tight Wooden Material Construction: Fabulous Modern Fireplace Design At Living Room Use White Oak Flooring Decor With Fabric Egg Chair At Seaside House ~ CLAFFISICA Architecture Inspiration
A Victorian house in London via William Tozer Architecture & Design. Love the flow of space - black framed doors, minimalist kitchen, indoor/outdoor space, light wood floors, lots of windows and natural light