Everyone can like any team in the Champions League this season, but for Real Madrid everyone also knows that the performance of their players must be able to improve because in this round Real Madrid will face a strong team from England. So it will be quite a difficult match for both of them if they can both improve their squad's performance and apart from that, there will also be a lot of spectators for this match because considering the competitive tension is tougher for each of them.
Real Madrid don't have good memories against Manchester City from the time they last met up.

At Etihad they got a really huge defeat like 4-0. Considering the way Real Madrid have been playing in the Champions League recently I can't be very positive about them. The performance against Leipzig was just horrible. If Leipzig were a more capable team they would be the side to advance.
Ancelotti should prepare his players strongly for this round. I don't think they would lose home in the first leg but the second leg will be way tougher.
Real Madrid and Manchester city are just two teams that is unpredictable in the champions league quarter finals now, like the two teams are just world class, even when you watch them play you will be happy with how coordinated the players are and you will be happy watching football because of the skills and talents of this players. The both side have a nice squad and wouldn't want to lose to each other but at this stage of the champions league, one among them will be knocked out while the other moves to the next round so it's obvious one of them will give up in this stage and it is difficult to predict who among them will drop for the other to continue.