Is building in Bavaria still possible for 500k?

Honestly, I would put the "compromise house construction," and that is what it is for most builders, aside with a plot price like yours.
My tie is really about to burst when I see, hear, read where the euro thumb is practically pressed everywhere in the real estate industry.
I know... supply and demand...
By now, the finca in Mallorca is cheaper.

The plot price is cheap!!!
Here, the city (!) is currently selling plots for a minimum bid (!) of 1350 euros / m2

Outskirts of Stuttgart...

The land price is cheap!!!
Currently, the city (!) is selling plots for a minimum bid (!) of 1350 euros / m2

Stuttgart outskirts...

For single-family houses? Honestly, I don't see any point in the municipality selling subsidized plots for single-family houses at these prices. No average person can afford that anymore anyway, and millionaires (because others can no longer build on such plots) don’t need subsidies. Beautifully designed multi-family houses with 4-6 units belong there.

That at best works only to a limited extent because all finishing trades are usually sourced regionally again and cannot all be flown in.

In practice, many trades probably even come from further away, but then they also need accommodation, etc.
A colleague originally trained as a carpenter and during his studies in Munich helped out a carpentry company from Hesse. They always arrived in a convoy with all the materials.

For single-family houses? Honestly, I don't see any point in the municipality selling subsidized plots of land for single-family houses at those prices. No normal person can afford that anymore anyway, and millionaires (because others can no longer build on such plots) don't need subsidies. Well-designed multi-family houses with 4-6 units belong there. In practice, many tradespeople probably come from further away, but then they also need overnight accommodations, etc. A coworker originally learned carpentry and during his studies in Munich helped out a carpentry company from Hesse. They always came with the whole convoy including all the materials.

Yes, for single-family houses the ones allocated to locals according to a points system still cost a hefty 1050 euros / m2. :(

I feel the same way. With that land price, there should actually be a really nice villa on it so that it is proportional.

Nope – where does it say that an expensive plot has to have an expensive house on it and a cheap one a cheap house? That’s nonsense.
The price of the land is determined by its location location location... if I buy expensive, I want to live in a good/popular location.
The price of the house is determined by size, features, etc...

If location is more important to me than a luxury house, it is perfectly legitimate to build a "normal house" in an upscale location.
It’s the same the other way around – the huge luxury mansions in rural areas – for those builders, size and space were more important than an upscale location.
I think your plan is okay as it is!
Gd

No - where does it say that an expensive house belongs on an expensive plot and a cheap one on a cheap plot? That's nonsense.

You interpreted the second part. You can also easily put something expensive on an inexpensive plot, especially in rural areas. I've never really been able to understand the thing about upscale locations anyway, but I am also a country kid where such things don't really exist. But spending half a million on a plot and over a million total budget to then live in the Town & Country basic standard because the budget is already overstretched would simply not be worth it to me. In the end, you then have a living value for really expensive money that does not correspond to this price. It's not only the case with expensive new building plots; I also include some old houses in "good locations."

Ultimately, you end up with a living value for really expensive money that does not correspond to this price.

That's exactly how it is. 500 sqm for half a million and, exaggeratedly, the masonry is only enough for the broom closet. All proportions are thrown overboard. Then it looks like parking the Dacia in the underground garage of the P1.