How To Furnish Small Airbnb Apartments & Holiday Homes for Comfort, Style, and Occupancy

The truth is, many small Airbnb apartments look cluttered (like everything’s shoved into corners).

And of course, guests notice—that’s why the first thing they say is, “the space feels small.”

Yes, your apartment can be small in sqm size. But we’ve spent enough time furnishing several 1-bedroom and studio apartments to know that your space only “looks small” when it isn’t furnished properly.

In this article, we sat down with our in-house, KHDA-certified interior designer, Shinnel, to get her best insights on smart layout tips, must-have furniture, styling tricks, and more.

So, keep reading to learn the art of furnishing small Airbnb apartments (exactly the way guests love it).

What’s the Best Approach for Furnishing Small Airbnbs & Holiday Homes?

Photo by Homevy

We’ve welcomed over 2,000 guests across our Dubai properties in the past year, achieving an occupancy rate of over 80%.  And yes, this includes studios and one-bedrooms.

So the first question we’re going to answer is, “What’s the first thing to consider when furnishing a small apartment in Dubai?”

Shinnel, our expert interior designer, says it clearly:

“Function first. The layout must support how someone will realistically use the space, whether they’re working from home, entertaining guests, or using it as a base between travel. We look at natural light and traffic flow before placing furniture.”

So instead of treating your apartment like one tiny box, break it up by ZONING. Even a studio or compact 1-bedroom can have clearly defined areas for sleeping, dining, working, and relaxing. And no, you don’t need to build new walls.

Shinnel recommends using visual dividers like:

1. A rug placed under the bed to subtly mark “the sleeping area.”
2. Pendant lights hung above the dining table to show “the dining spot”.
3. A striking piece of art above the sofa to visually separate the living room from the sleeping and dining space.

It’s more of giving each zone its own identity without overcrowding the room.

Homevy Tip: To balance comfort, style, and functionality, Shinnel uses what she calls the 3-question test: “Does it look good, feel good, and serve a purpose?”  If it’s not a solid yes to all three, it doesn’t belong in the space.

So, how do you get it right? The next section will walk you through the practical ways to do so.

5 Practical Steps to Furnishing Small Airbnb Apartments in 2025

Photo by Homevy

Now, let’s see how to practically furnish a small vacation rental apartment in 5 easy steps. These steps will help you turn any compact unit into a comfortable, stylish, and high-performing Airbnb home, just like our top-performing properties in Dubai:

Step 1: Map Out Guest Behaviour First

Before you even think of colour palettes or furniture, pause.

Ask yourself: “How will my guests use this space?” Will they need a desk for remote work? A small dining nook for takeout and coffee chats? Or just a clean, functional base to sleep and recharge?

This is where most Airbnb hosts go wrong; they decorate for aesthetics instead of purpose. But as our certified designer Shinnel puts it: “We never add something just for aesthetics if it’s taking up valuable space.”

So, rather than rushing to fill the room, take a step back and think:

1. Do they need seating for two or four?
2. Do they need floor space for suitcases?
3. Is there a place to drop keys, charge a phone, or make a quick coffee?
4. Where will they eat—on the sofa or a proper table?

Comfort and convenience come first. They’re what set high-performing Airbnbs apart in any competitive market, not just Dubai alone.

Step 2: Use Furniture to Reinforce Zoning

Sure, you already understand the importance of zoning—creating functional areas like sleep, dine, work, and relax. Your layout sets the blueprint, but your furniture brings that blueprint to life.

But how do you make that happen in a small apartment?

Go for pieces that fit each zone:

• A small dining table for two quick meals or even working with a laptop.
• A raised-arm, slim-legged sofa to make the room feel bigger and more open.
• A floating vanity that doubles as a desk.

You don’t need more stuff; you need smarter placement and pieces that do more than one job. That’s what makes the space feel curated, not cramped. When we asked Shinnel what doesn’t work in small spaces, she didn’t hesitate:

“Large corner sectionals, big media consoles or TV units, oversized coffee or dining tables.”

And she’s right. These bulky pieces eat up floor space and disrupt the flow. In small apartments, scale is everything.

Step 3: Style with Intention, Not Excess

Once your layout and furniture are in place; it’s time to bring in personality. Shinnel calls this approach “intentional minimalism.”

Not cold. Not chaotic. Just enough detail to feel stylish and lived-in without overwhelming the space. “In small homes, less is more. Think texture over quantity.”

Here’s how to pull it off:

1. Start With a Neutral Base.

Whites, creams, and soft beige tones visually open up the room. Then layer in warmth with throws, pillows, or art. “Avoid bold, dark colours in large doses. Monochrome or tonal palettes can make a small space feel bigger.”

2. Play With Height and Texture.

Use tall plants, sculptural floor lamps, or floating shelves to draw the eye upward like linen curtains, Bouclé cushions, or tall plants, sculptural pieces that feel cozy without adding clutter.

Be intentional. Be thoughtful. And remember, style the areas your guests will use and notice. Let the rest breathe.

Step 4: Maximize Light and Storage Creatively

When furnishing a small Airbnb apartment, lighting and storage are two design elements you can’t overlook. They naturally make the space look bigger, brighter, and more welcoming, exactly what your Airbnb guests want to walk into.

Here are a few lighting and storage tips from Shinnel, the interior designer at our Airbnb property management company, Homevy:

Lighting Tips for Furnishing Small Dubai Apartments:

• Use multiple light sources – not just one ceiling light.
• Choose warm white bulbs to create a cozy glow.
• Try uplighting or wall sconces to make the ceiling feel higher.
• Add mirrors opposite light sources to bounce brightness around the room.

Clever Storage Ideas to Furnish an Apartment:

• Beds with drawers or storage boxes underneath.
• Wall-mounted hooks for bags, robes, or coats.
• Baskets and boxes tucked under benches or sofas.
• Use beautiful storage as decor, like woven baskets and fabric boxes.

“If it has to be seen, make it pretty and make sure it’s useful too.” – Shinnel

Step 5: Add Smart Touches for a Seamless Guest Experience

Furnishing an apartment, especially a small one, isn’t just about wooden chairs and tables.

Here are a few of our go-to smart touches that guests love:

• A charging station or universal adapter near the bed (no one wants to crawl under sofas).
• A simple bench, mirror, and hooks by the entrance to help guests settle in and keep things tidy.
• Blackout curtains because no one really wants to wake up at 6 AM on a vacation.
• A scent diffuser or candle; go for clean, subtle scents that create a fresh first impression.
• Smart locks or keyless entry are super useful if guests arrive at midnight or are checking in solo.

As Shinnel often says: “The best spaces are the ones that feel like they were set up with you in mind.”

3 Mistakes to Avoid When Furnishing Small Vacation Rentals & Airbnb Apartments

Photo by Homevy

Even with the best intentions, it’s easy to overdo things when trying to make a small apartment look luxurious, especially for Airbnb.

So we asked our KHDA-certified designer, Shinnel, to break down the most common missteps she sees in Dubai rentals and how to avoid them.

1. Oversized Furniture That Dominates the Room

Big furniture doesn’t equal better.

One of the first mistakes Shinnel sees is people stuffing in massive sectionals or king-sized beds into small apartments. While it may seem luxurious, in reality, it shrinks the space, disrupts traffic flow, and overwhelms the layout.

Instead, go for a sleek 2-seater instead of a chunky 3-piece sofa, or a queen bed with storage underneath instead of a king with none. Always measure before you buy.

2. Buying Full-Matching Furniture Sets

You know those living room sets where the couch, coffee table, TV stand, and shelves are all the same color and style? They might be convenient, but in a small apartment, they make the room feel flat, bulky, and outdated.

Matching everything sucks the personality out of the room. It also adds visual weight; instead of blending in, everything competes for attention.

What you should do is mix textures and tones.

For example, pair a fabric couch with a wood-and-metal coffee table, or blend neutral seating with one statement chair. Let each piece bring something new to the space while still working in harmony.

3. Blocking Light and Natural Walkways

Many new hosts unknowingly place tall wardrobes in front of windows or push a sofa too far into a walkway.

The result would make the room feel dark, closed off, and harder to navigate.

Prioritize flow and light. Make sure windows are never blocked and there’s a clear path through every area. This keeps the space feeling open and comfortable, two things that matter a lot to guests.

How Does Styling a Small Apartment Influence Airbnb Bookings?

Photo by Homevy

Styling directly affects how your space feels to guests and how it looks in photos. And both of those things matter if you want more bookings. It’s not just about pretty pictures. Good styling also creates comfort, the kind that makes guests leave good reviews.

So, how do you get it right? 

According to our KHDA-certified designer, Shinnel, here are a few purposeful styling ideas that work beautifully:

1. A curated stack of books or a travel guide near the bed; useful and personal.
2. A bold art print or quote frame that reflects local culture or ties your color palette together.
3. A coffee station or scent diffuser that says, “We thought about your comfort.”
4. Layered bedding with textured throws that feel luxe without adding bulk.
5. Tall plants or mirrors that draw the eye up and add softness or light.

This is what Shinnel calls “intentional minimalism”, just enough detail to feel inviting and styled, never crowded. When your space feels good and looks good in photos, it leads to more clicks, more bookings and better reviews.

Where to Shop Furniture for Small Apartments in Dubai

Photo by Homevy

Okay, this is the part where you get into action: buying the furniture itself.

It’s not as stressful as it sounds, especially with Shinnel’s go-to list. When it comes to sourcing the right pieces for small Dubai apartments – she knows her stuff.

At Homevy, these are our go-to stores for furniture shopping in Dubai:

1. Pan Emirates: Budget-friendly with a wide variety. Great for compact sofas, dining sets, and accessories.
2. Home Centre:  A trusted Dubai brand. Their pieces are good quality, easy to decorate with, and great for everyday use.
3. The One Dubai Hills Malls: A top choice in the UAE for affordable, modern furniture and stylish home décor. You can find both simple and fancy pieces, and you can shop them online too.
4. Amazon.ae: Great for niche items, space-saving furniture, or smaller accents.
5. Homes R Us: A one-stop shop for furniture, home décor, and accessories to style your space beautifully.
6. H&M Home: Perfect for finishing touches like cushions, vases, and stylish accents that pull the whole room together.
7. Crate & Barrel: A bit of a splurge, but worth it for that one standout piece that makes the whole space feel high-end.

FAQs on Furnishing Small Holiday Homes & Airbnb Apartments in 2025

1. What’s the Most Important Thing to Consider Before Furnishing an Airbnb?

Functionality comes first. Think about how guests will use the space; sleep, dine, work, relax then furnish around that. A beautiful apartment means nothing if it’s not practical or guest-friendly.

2. How Does Styling Impact My Airbnb Bookings?

Styling increases bookings by improving first impressions. Thoughtfully styled apartments stand out in photos, feel more welcoming, and leave guests with a positive experience, all of which drive better reviews and higher occupancy.

3. Do I Need to Decorate Every Area of the Apartment?

No, focus on key zones. Decorate the entryway, sleeping area, lounge, and dining corner. Let the rest of the room breathe. Over-styling leads to clutter, especially in small apartments.

4. Should I Buy Matching Furniture Sets for My Airbnb?

Avoid them. Matching sets can make the space feel heavy and outdated. Mix and match pieces that complement each other in color, style, and size to keep things visually interesting and airy.

5. How Much Should I Budget for Furnishing a Small Airbnb in Dubai?

It depends on your taste, but AED 3,000-8,000 is a good range. Stores like Pan Emirates, Home Centre, and Amazon.ae offer stylish options on a budget while splurging on 1-2 standout pieces adds charm.

6. Should I Hire an Interior Designer for a Small Apartment?

It’s helpful but not essential. If you’re unsure about layout, flow, or visual cohesion, a designer can help you avoid costly mistakes especially one with Airbnb or short-term rental experience.

7. How Do I Balance Functionality And Aesthetics In A Small Space?

Prioritize multi-use pieces with style. Every item should either serve a purpose or elevate the space. Choose furniture that’s both practical and visually light, and use decor to enhance, not overwhelm the design.

Final Design Principle for Furnishing Small Airbnb Apartments

You’ve seen the core design approach shared by our expert designer, Shinnel, and we’re ending this article with one final tip from her.

We asked her: “If you could give just one design principle that always works for small apartments, what would it be and why?”

Her answer was: “Scale everything down, but style everything up. In small apartments, the wrong scale can disrupt flow, function, and comfort. But when everything fits just right and is styled with care, even the tiniest flat can feel luxurious.”

And honestly, we couldn’t agree more. Stick to these principles, design with intention, and your Airbnb guests will feel the difference.