It's a more expensive place to live than Los Angeles, Berlin, Brussels, Prague or Washington DC.
Birmingham's growing reputation as an international city was reinforced yesterday as it shot up from 69th to 41st in a list of the cost of living in cities around the world.
The study by Mercer Consulting shows that cost of living across the UK has increased compared with other parts of the world, with London now ranked the second most expensive city on the planet.
The research, compiled by Mercer Human Resource Consulting, covered 143 cities across six continents and measured the cost of 200 markers including housing, transport, food, household goods and entertainment.
John Lamb, from Birmingham Chamber of Commerce and Industry, believes the high ranking is a reflection of the progress made towards turning the city into a major international force.
"It just shows how prosperous we have become," he said. "There is still a great deal to be done but you would expect living costs to climb as we are becoming one of the most successful cities in Europe.
"You just have to look at some of the inner-city living available and the facilities in the Mailbox and Brindleyplace to see why it is becoming a desirable place to live."
Yvonne Traber, of Mercer Consulting, said stock market conditions have been as important as local improvements in shaping the list.
"Steep property rental costs, together with the strengthening of the British pound compared to the US dollar have contributed to the high ranking for Birmingham and London," she said.
While Birmingham beat many of its more traditional rivals, it was placed behind Cameroonian city Douala (24th), Kazakhstan's largest city Almaty (30th) and Glasgow (36th).
Moscow was said to be the most expensive place to live for the second successive year, with Asuncion in Paraguay named as the least expensive for the fifth year in a row. Birmingham, Glasgow and London were the only British representatives in the top 50 list.