Where do I begin with this one? I LOVE the mix of fun colors in this space! The majority of the color in this space comes from that beautiful rug. It provides the room with a great color palette and lets you bring in a variety of colors without overwhelming the space. Keeping the furniture lines clean and simple keeps the room from looking too busy. I also like that they continued the rug colors into the adjoining kitchen/dining area as well. It's just so fun!
Start with a medium tone neutral color on your walls, nothing too light, nothing too dark. You want to provide a calm backdrop to the brighter colors in the space. Also, by staying with a medium tone, it will keep the colors from becoming too bright and splashy. Although they can be expensive, an area rug with a simple pattern and bright colors will be the focal point and basis for all the other colors in the room. Pull one color from the rug to use on your sofa and/or chairs, then start adding your accessories in the other colors from the rug and be sure to add in a little bit of white to keep the space balanced. If you are a little color shy, pick just a couple of the colors and use those for your pillows and accessories. The great thing about having a variety of colors is that you can always change out your pillows or room accessories to bring in more or less of a particular color, and get a whole new look.
What do you think, could you put a fun bright colored area rug in your space?