Celebrities like Sir Paul McCartney, world class music events and a host of artistic exhibitions have led to an unprecedented interest in buying in the city.
Figures from Halifax Estate Agents shows house prices on Merseyside have risen by an average of 76%, from £79,886 to £140,842, since June 2003, when the city was designated as European Capital of Culture.
The growth in house prices in the city has outstripped both the average house price growth across the north-west, 69%, and the rest of England at 50%.
'Since Liverpool was designated the European Capital of Culture for 2008 five years ago, property prices in the city have risen sharply,' said Martin Ellis, chief economist, at Halifax.
'Prices have been boosted by the regeneration in Liverpool's infrastructure in preparation for this year's festivities. Additionally, the demand for good quality, affordable housing has remained high due to Liverpool's close proximity to other key towns and cities,' he added.
The findings seem to counterbalance those who argue that northern cities in England have lost their reason d'etre and should be written off.
However, overall property prices in the UK are continuing to fall. Prices fell by an average of 1.9%t in August alone. House prices were down 12.7% year-on-year in August itself, which is a sharper drop than was seen in the early 1990's housing downturn.