Simple and functional design. I chose option 1: room for children and a play/relax area.
I think because of the option chosen, it would not be necessary to make any structural changes. It can also be a "semi-open" area.
Due to the inconvenience of the heights, the design is based on low furniture, highlighting a bed space at a relatively low height, removable storage furniture under such beds.
Regarding the play/relax area, I chose pieces equally with low height replacing the couch.
This creates a modern area without making a big change, both structurally and economically.
If after the contest you need help or you have any questions, don't hesitate to ask for my data to Cocontest and contact me.