The government of Andhra Pradesh brought in to existence the act named as The A.P. Housing Board Act in year 1956. Later after four years came the implementation of this act in the form of establishment of Andhra Pradesh state Housing Board. The main objective of this act is to construct houses at affordable prices to many home seekers in the state. Also the repayment plan is very slow paced to facilitate the weaker sections of the state that live on daily wages. The good thing about this scheme is that it not only aids the weaker sections of the society but also helps the middle class people to realise the dream of own house relying on their budget and requirement. This very reason has secured enormous popularity across the state which is being implemented even today.

Andhra Pradesh Housing Board in the past decade has also taken the construction of commercials complexes to accommodate offices and shops. This segment has two advantages mainly. One being the increase of infrastructure in the state and also it would provide an excellent option of revenue which can aid the economic growth of the state. This far-sight of government has lead to thriving real estate sector. The housing board has joined hands with the real estates to build many commercial complexes and houses in residential areas based on the discrimination of rich, middle class and poor. This phenomenon not only brings all sections on to the same street but also provides various jobs to the sections that are in desperate need of them.

A house is offered in two modes: one being the out-right scheme and the other is the hire cum purchase scheme. The first scheme would require the home seeker to make the payment in three months. The second option facilitates the pay back as the instalments are placed without creating any burden to the home seeker. But first to own a house in this format, one needs to apply for the house at the AP housing board paying the Earnest money deposit depending on cost of house applied for.