Plot of land 371 sqm, are the expectations realistic?

Another example directly near me in the suburban, incorporated village (500m from the main bus line stop, from there 10 minutes to the city center - it is only a small city):
A plot of land of 500m² was up for sale for a long time. Construction work started at the end of last year. In the meantime, you can see that two (!!!) single-family houses are being built on this land. Presumably slightly larger than mine in size. There is a roughly uniform buffer strip around each house. Assuming external dimensions of 11x8m² for the house, this results in about 238m² of land per house.
However, it is unclear to me why they did not build a semi-detached house to at least make some use of the little land. Because between the houses there is only a kind of "gorge" with a width of 6m. Let’s see how it all looks when it is finished.
By the way, the asking price back then was 200k€ for the 500m². But that was at least one, rather one and a half, years ago.

From this perspective, 371m² is already quite generous again...

Thank you very much for the numerous responses. At first, some of them gave me a scare, but others really encouraged me. I don’t think anyone needs to worry about the location for me. Some were actually not that far off with thoughts towards patchwork, children rooted, etc. We both work in Berlin Mitte and live more or less right by the train that takes us to Berlin. Otherwise, a basement is definitely being considered. I was aware that the base area is not the same as the living area. But the hints regarding the floor area ratio and site coverage ratio etc. have also helped me. We are convinced that it is feasible and that we will create a beautiful home for ourselves.

we are convinced that it is doable and that we will create a nice home for ourselves.

Will you keep us updated on the project?

I am hoping for a floor plan discussion

Are you going to keep us updated on the project?

I had the spontaneous feeling that someone wanted to watch me fail spectacularly
But I checked again, your comments were very supportive
So of course... I think I will definitely present my ideas and the state of affairs for discussion from time to time. As I said, I am already very grateful for the numerous feedback within one day.

Otherwise, a basement is definitely a consideration.

You have to be a bit careful with the geology in Berlin; in the glacial valley, you can encounter problems with groundwater, and on the Barnim plateau in the northeast, there have long been issues with "perched groundwater." The basement must be suitably equipped and is not cheap; for us, the offer was, I believe, around 150K (versus a significantly larger and fully developed attic for a portion of the costs).

As inspiration for what is possible on small plots, you can also google the house "Kleine Welle" by Guntram Jankowski. 350m2, 5.80*13.50, and in my opinion, a BRILLIANT floor plan.