Small living rooms are quite common these days with new constructions. The trick is in using the full space that is available into maximising storage, choosing the right furniture (as per the available space) and also laying it out properly. Choose out storage solutions that can be used to its optimum usage like built-in storage, smart double use furniture pieces etc, and the most important part of your clutter free idea is worked upon.
While choosing colours for small spaces, always select neutral colours like white, beige etc, so that they give out a spacious feel to the room. Also one more trick to visually enlarge a small room is to place a large mirror inside the living room. Mirrors reflect spaces and hence it would make a small living room look large.
Lighting is also an important aspect in enhancing a smaller space. Play with the window dressing, but do remember to keep it to a minimum; and allow as much sunlight to peep in through. A bright and airy room never ever feels like a cramped space.
Lastly to make a living room more inviting and a warm place, place an appropriate rug which is of apt size to match your furniture.