Paposh Nagar was created as a plot settlement in 1954 for migrants from India. It was designed as 417 plots of 38.5 square metres each.
The houses consisted of two rooms, a kitchen and a toilet. However, over time they have grown and many of them are now ground plus one to ground plus three structures. The residents have also increased the size of their plots by encroaching on the roads. These were planned as 3.6 to 4.2 metres wide but today are only 1.2 metres. Secondary roads have also decreased to half their original size. The density of Paposh Nagar is about 1200 persons per hectare.