I'd do option 2 myself. Technically I see an option 3- putting the couch out in the open, diving the two spaces. Couches don't need to be on a wall- you'd just need a smaller couch to do that and still have space to pass through to the other room.

Hello Sir, For an apartment building, mold shall not be much of an issue. If it is done properly and the gaps are closed then even insects/cockroaches are not a problem in the brick walls. In fact they become more beautiful after some weathering and exposure. The man-made alternatives to actual brick finish are, brick tiles, brick wall papers, brick design laminates and MDF sheet. They are a close replica but personally we prefer actual bricks for the exteriors. Thanks, Nitin Cornerstone Designs Bangalore

I know all the houses in side would be beautiful, but went with the last one as the tiles outside give me enough info to have an idea of how beautiful ( if not beautiful) at least layout wise and material wise, how it would be, Now, can we see the inside please? hehe*

mostly Indians uses brown varnish paints for their main wooden doors....I even don't know why they didn't use other colors...even in my house doors are given brown color wooden texture...