If Manchester City is considered as favorite team for English Premier League or Champions League then Real Madrid must be considered as favorite team for La Liga and Champions League. There is no doubt that Real Madrid is one of the best club level teams. No other team has won more Champions League titles than Real Madrid. Last season unfortunately real madrid lost but this season real madrid has more chances to win. This season Real Madrid has formed a great team with young players and it is believed that Real Madrid can definitely beat Manchester City in the Champions League this season. The La Liga title is all but assured for Manchester City, all that remains is to do well in the Champions League tournament.
Real Madrid can indeed be calmer when facing matches in the UCL. Because Real Madrid already has an advantage in La Liga and is comfortably in first place with a difference of 8 points at the moment. This is different from Man City, which still has to fight hard in the race for first place in the Premier League. but something similar also happened to Man City last season. Man City last season also struggled in the UCL while competing with Arsenal in the Premier League. And Man City doesn't seem bothered by this.
Apart from that, Man City also has several injured players at the moment. So even if later against Real Madrid all the players have recovered, those who have recovered from injury will not necessarily be able to play as well as before they were injured. But I'm still not sure which team should be the favorite.
Real Madrid is a big European club that's won the UEFA Champions League title more than any other club in the whole European continent and the experience of some of their players in the competition gives them the edge when compared to other teams that are still in the competition. Manchester City on the other hand is the reigning champions of the competition and was able to eliminate Real Madrid from the competition last season to reach the final and eventually win and that's why a lot of people are also of the opinion that of they can eliminate Real Madrid last season, they can also repeat it again this season but because I don't think it's going to be as easy as many people think.
The quarter final tie between Real Madrid and current champions of the competition Manchester City is without doubt the strongest tie in the competition and that's because of the strength of both teams. It'll be a very difficult two-legged games for the both teams but considering the performance of both teams in all competitions this season, I'm of the opinion that Real Madrid are going to progress to the finals of the competition at the expense of Manchester City