Used for describing very large and spacious properties, not just any nice home. Their palatial estate was visible from miles away.
Pro Tip 2/3
Wealth Implied
Implies great wealth and luxury, beyond ordinary comfort levels. The hotel's palatial ballroom hosted the most exclusive events in the city.
Pro Tip 3/3
Not For Small Things
Don't use 'palatial' to describe something small that looks grand; it must also be large. Even though the room was beautifully decorated, it was too small to be described as palatial.