Is it a publicly owned (government) non-profit scheme or a private for-profit scheme?
Even if it is private - is there a credible threat of malicious competition flooding the administrators with false applications and putting them to loss?
Is a profit made by the administrators through the applications?
Is it more comparable to buying paper, ink, postage stamp, than it is to a gambling lottery scheme.
Are the successful applicants chosen on merit or draw?
If it is a government draw for publicly owned land - is it in order to avoid preferential selection and corruption?
You would need to take many factors into account when deciding whether this is gambling or genuine islaah.
Islah or Al-Islah (الإصلاح ,إصلاح, al-ʾIṣlāḥ) is an Arabic word usually translated as "reform", in the sense of "to improve, to better, or to put something into a better position." It is used in religion and politics.
Beware of committing injustice:
وَمِنَ ٱلنَّاسِ مَن يَقُولُ ءَامَنَّا بِٱللَّهِ وَبِٱلْيَوْمِ ٱلْءَاخِرِ وَمَا هُم بِمُؤْمِنِينَ
Of the people there are some who say: "We believe in Allah and the Last Day;" but they do not (really) believe.
يُخَٰدِعُونَ ٱللَّهَ وَٱلَّذِينَ ءَامَنُوا۟ وَمَا يَخْدَعُونَ إِلَّآ أَنفُسَهُمْ وَمَا يَشْعُرُونَ
Fain would they deceive Allah and those who believe, but they only deceive themselves, and realise (it) not!
فِى قُلُوبِهِم مَّرَضٌ فَزَادَهُمُ ٱللَّهُ مَرَضًاۖ وَلَهُمْ عَذَابٌ أَلِيمٌۢ بِمَا كَانُوا۟ يَكْذِبُونَ
In their hearts is a disease; and Allah has increased their disease: And for them is a grievous penalty because they are false.
وَإِذَا قِيلَ لَهُمْ لَا تُفْسِدُوا۟ فِى ٱلْأَرْضِ قَالُوٓا۟ إِنَّمَا نَحْنُ
When it is said to them: "Make not mischief on the earth," they say: "Why, we are only those who set things right!"
أَلَآ إِنَّهُمْ هُمُ ٱلْمُفْسِدُونَ وَلَٰكِن لَّا يَشْعُرُونَ
Of a surety, they are the ones who make mischief, but they do not bring this to mind.
From Surah Al Baqarah, Verses 8-12