I don't think it is Hogwarts but it is set up where that can be a possibility. The buildable lot in the realm could be a school of magic and the town below Hogsmeade. I do think the magic shop area has some resemblance to Hogsmeade from the Potter books.
Personally I don't mind the subtle similarities to the Potter series and the fact that the Sim in the video looks similar to Newt from Fantastic Beasts. Books, movies, cultural changes inspire inspiration. Just as some things in the Island Living pack were inspired by Moana. And just because it may have these similar aspects doesn't mean you have to play that way. That's what makes this game great, you can play it how you want to and create your own story, your own sim life and take it in any direction you choose.