The village will comprise 21,527 sq ft of retail and leisure space on Ownall Road.
Sixty-seven of the homes being built will be affordable homes, including 41 for social rent, with 20 of these being larger four-bed family homes. These will replace the former small properties on the site.
Funding for the scheme was secured by Birmngham City Council, the Homes and Communities Agency (HCA), City Housing Partnership and developers Barratt West Midlands.
The HCA has provided £4.8m towards the scheme, with £1m coming from Birmingham City Council and £150,000 from the City Housing Partnership through the Working Neighbourhoods Fund. The bulk of the funding, £21m, has been invested by Barratt West Midlands.
The council selected Barratt in 2007 as its development partner to produce regeneration plans for Shard End Crescent which involved planning, design, development and delivery.
Councillor John Lines, cabinet member for housing, said: “This is a huge boost for local people in Shard End. New homes, new facilities, new shops and the creation of a safe, secure and welcoming centre for local people is the result of years of planning and development.
“I’m delighted that after the tireless efforts of officers behind the scenes, we are now in a position where we can deliver major regeneration to this area.
“I’m particularly proud this scheme is going ahead, despite the challenges of the economic climate and I give thanks to our partners for their efforts in transforming this neighbourhood.”