At young age, Balu Mahendra literally saw her mother facing difficulties on building a new house. That was the inspiration for him to direct this movie.
Whole budget of the movie was 12lakhs INR including building of house. Upon release, the film made a profit around 72lakhs INR. Thus, it was critically acclaimed and also financially successful movie.
Balu Mahendra wrote the script with Archana in his mind for actress in lead role.
Veedu and Sandhya Raagam are the only two movies which Balu Mahendra made without any commercial compensation with purely cinematic.
Balu Mahendra dedicated this movie to the people who don't have a own house, that also included him.