The 35-square-metre apartment is home to Studio Bazi founder Alireza Nemati and his wife.
The pair's aim was to create an open-plan space that maximises natural light, but to also retain a level of privacy in the sleeping areas.
To achieve this, Nemati devised a wooden sleeping box with a storage system that is raised above the ground in the back corner of the apartment, adjacent to the kitchen and living area.
"The wooden sleep box with storage system provides a level of privacy, separating the sleeping quarters in a raised corner of the apartment," said Nemati.
"From the inside of the sleep box, there is a good view of the whole flat and to the windows, which makes it a very cosy place."
The stairs leading up to the sleeping area contain much of the storage space. They integrate three large sliding shelves, which can be used to hide large household appliances.
If more privacy is needed, a curtain separates the sleeping unit, kitchen and living zone from the apartment entrance.
To make the rest of the apartment suitable for accommodating guests, the furniture – such as a movable sofa and extending table – was chosen for its flexibility.
To bring warmth to the apartment, Nemati opted to clad the box in dark stained pine panels. But in the kitchen, handmade Iranian tiles offer a nod to the young couple's family heritage.