Receiving the approval for land purchase from the municipality

Don't underestimate the size. If the floor area ratio should be 0.4, then you can cover 224 sqm with the main building and terrace, with 480 sqm "only" 192.
If a garage or double carport also plays a role, it could get tight with "a lot" of garden.
With a city villa, you have more straight exterior walls upstairs, but the rooms tend to be rather compact in terms of floor space. (I'm just assuming that you won't build a 300 sqm villa due to finances.)

Exciting project. Is there already a budget for the house without the land?

For 4 children plus a large family bathroom plus parents, it can indeed get very tight on one level, even if it is a city villa.

I’ll try to give you an answer that helps you. Normally, it works like this (the allocation model you described is actually standard): 1, Application for the plot. Here you probably filled out an application form and entered things like children, income, etc. 2, An employee or a team in the municipality evaluates the applications and awards points according to defined criteria. For example, 10 points for each child, etc. 3, A ranking is formed from all applications according to the points. The one with the most points is at the top. 4, The plots are allocated according to the ranking. For example, if there are 10 plots, then the first 10 get a plot. That means they receive the award. 5, When you have received a plot (the award), there will eventually be a notary appointment where the purchase of the plot is processed. 6, Now the plot belongs to you. By receiving the award, the municipal employee only means that you are among the applicants or have a good chance, having received enough points to be near the top of the ranking. I hope this helps you.