You could first paint the floors in a light color and add soft carpet square peel and stick tiles where you will be putting the tv and furniture.

add a mirror to gain more light from the reflection of existing window

Cork floating floor = $1.99/sf Golden Beach (you can install it yourself) www.icorkfloor.com It comes in 10mm and 11mm thickness.

To make this cozy, I suggest working with WARM colours. The two-tone gray is very cold and very dark. Lighten it up with some warm colours. I always like to start with a couple of coats of primer to give a new perspective (primer is cheap and it offers a white/neutral background to start the design process AND it offers the PERFECT surface for new paint which is more expensive than primer). It is a cheap, simple, easy way to prep the walls AND offer a "blank slate".

I would keep the overhead lighting to a minimum and work with plenty of table lamps and floor lamps for that cozy feeling. Lots of throw blankets and soft furnishings...and remember some nice pieces of art (can be $10 pieces from the Bulk Barn...doesn't have to be expensive) that make you smile. Cozy is all about contentment.

Carpet is a great option in a basement because it will warm the space up. Whatever you end up painting the walls, you need to have good lighting installed. recessed would be ideal.

Assuming you will be painting the walls I'd go with anything but gray, it looks like a prison rec room now.

Consider painting the ceiling a dark color and keeping the rest of the space light and bright. And again, get good lighting in there.

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Looks like a concrete floor, polished concrete floor has been in for a while. It is cheap and efficient use of the material, and the reflectivity will make everything lighter. Also, consider painting the walls light, but beware, now there might be too much light in the space.

Good luck.

Ritu Saheb, Architect, AIA

Do not put carpet in your basement whatever you do. It might feel "warm" but in reality, it will suck up any moisture that comes into the house (and most will come through the basement". Find a durable flooring and put a rug over it for warmth.