I wanted Sunnyboy to have a play kitchen but we didn't have the room (or the money) for the beautiful wooden kitchens I'd seen. Instead I bought this wooden hob from a charity shop for £2. At first it was on the floor in the corner of the bedroom and then when we were walking home one day we spotted the wooden stand/shelf with a note attached saying 'free shelf thingy - please take'. So the hob stands on that now and Sunnyboy has room for a tray of kitchen accessories underneath.
The cube storage unit on the left cost £3 secondhand from a charity shop and Sunnyboy has a basket of kitchen utensils and a basket of play food, also from charity shops. In fact, every item in these pictures (other than the 'free shelf thingy') was bought secondhand. So Sunnyboy's kitchen was very cheap to create and is compact enough to fit in a small space, but regardless of this he enjoys playing with it a lot.
There are more ideas for toy storage in a small space in these posts:
Toy storage in a small space - Part 1
Toy storage in a small space - Part 2
An art easel in a small space
An art display in a small space
Click here to see the play, crafts and learning ideas blog link-ups we share at.