I think they mean 5 rooms, not 5 bedrooms.....one master bedroom and 2 bedrooms for children with twin beds or bunk beds in each. I lived in a 1,300 sq ft house for 2 yrs with my husband and 2 sons. My suggestion would be to have an open floor plan for the kitchen, dining area and family room in one large room. Add a bar in the kitchen for casual dining. Be sure to include storage in family room for toys, games, etc. Add a built in desk in eiher the kitchen or family room areas . The master bedroom and bath should be large enough to accomodate a queen size bed and if possible a sitting area (maybe a bay window large enough for for a small loveseat or a couple of comfortable chairs). I would recommend a large walkin shower but no tub for the master bath. Instead have a nice size tub/ shower combo in the hall bath. Too make your house feel larger, use neutral camel, beige, gold or grey paint and carpet through out the kitchen, dining area, family, hallways and hallbath. If you want to add color, limit it to 3 bedrooms. Hanging all your window treatments at ceiling height will make your rooms feel larger and taller.

There is contrast between the traditional furniture and the focal point of the floor which pops, draws attention. I would recover the sofas in cream colored soft fabric - suede. I would leave the curtains grey, and put down a large neutral area rug. The edges of the room would show the pattern of the floor. I would color the wall and add texture to it, but not too dark as the room will appear smaller. Add a picture and put a nice plant holder, large vase in the left corner of the room - an oriental-style vase. Or, a cream-stripe fabric on the sofas. You could go soft or bold in this room - depending on your taste.

A tricky question! Wall to wall carpeting is not a good option in India due to our hot climate as they tend to radiate heat and makes the rooms hotter. That said, they do add an aesthetic appeal and a decor feature when used in the living area. The choice rests with the individual.

I will suggest to add one big wall art which will give a rich look to your living room and you can add a corner lamp too