I wouldn't spend the money for a room-in-room. You cannot afford to sacrifice any more ceiling height, and 2.8m wide already limits you to two chairs side by side - of course you could still add more rows of chairs.
Find a local acoustic treatment company that can provide affordable diffusion products, and place them behind your front speakers. I would use one of the 2.8m concrete walls as the Front of your system. So you'll need to decide what size display will go there and how the speakers can fit around it all. Due to the narrow size, I recommend diffusion behind the Front speakers rather than absorption because you want to let the sound bounce around as much as possible so that the room can sound a bit larger than it is.
All enclosed spaces have room modes/resonances. You can predict them by taking a Length, Height, or Width dimension and dividing it into the speed of sound. 1131fps or 345ms. Acoustic measurements allow for you to program DSP filters to trim any room induced peaks.
If you plan to have copious amounts of bass, you will need some absorption as well. I recommend starting with your normal room furnishings, big padded seats, big pillows, that sort of stuff. Tightly packed bookshelves are also great to provide both absorption and diffusion, which may fit on the back wall, for example.