Babies don’t need a lot of space before being able to walk and play. In the beginning, the baby’s room is mainly for your comfort and preference.
The main items to have in a baby’s room are the crib, a changing station, a dresser and a bin that should be emptied out regularly. Other items include a bassinet to help the baby to sleep, a rocking chair for a similar effect as the bassinet and stimulation for the baby.
Arranging these items isn’t the biggest hassle you could deal with. Provided you have the necessary space to walk around the room without having to move furniture items out the way. If you have to move furniture to move around, it means that the room is not big enough or there is unnecessary items lying around.