Hello. First of all I am glad that I had a chance to work on such interesting project as this one.
Small spaces can be really inspiring but in the same time challenging. I've tried my best to make it functional and acceptable for living. Here is my idea.
First of all my first taught was to separate living and bedroom, but the space is small so I've decided to combine everything together.
I've achieved that by creating platform where will be placed sofa and on the opposite will be tv , plus the natural light will be closer to the user, as you described that you've wanted to have a view , so this is the closest to get to that point.
Behind sofa is big MIRROR that will open the space and make it bigger.
On the ceiling there are placed wooden beams , how the entire room will look warmer and cozier together with the brick wall.
The stairs to reach the platform are drawers , where you can put all your daily stuff, and underneath the platform is actually rolling bed.
On the renderings you can see how that looks like when closed and how that looks like when opened. It is really good solution for someone who would like a real bed, because this way you have it and use it only when you need to sleep. The platform and two level living area is good because the ceiling was too high and like this the space was divided and made more natural to use.
Existing shower area is now transformed into the kitchen and closet. There is no wall in between , only closet that goes to the top of new ceiling with the height of 2.80m. I've created this height because it looks natural and space will be easier to clean and will look warmer.
Kitchen has rally simply elements, all in white , and mirror also to provide bigger room effect.
Bathroom is simple with wood and white ceramics , also with lover ceiling , only the part of the shower is full ceiling , that is painted in red to make it more vibrant.
Toilet is replaced and put closer to the entrance of the bathroom because of the space in front of the shower that was too tight.
On the entrance of the bathroom are sliding doors, which are placed in the closet entry too.
Like this, the rooms can be used very easily with no waste of the space.
I hope this description will help you understand what I've had on my mind, when I've started creating this amazing little space with a lot of potential.
All the best and good luck with picking the best solution.