I am having faith in Manchester City but please don't underestimate Real Madrid power of winning this phase of the Champions League. Your Comparism is just based on the last performance of the last season which we all knew that the club didn't have a good striker, the midfield was weak and defenders couldn't deliver their job, yiu should check 2021 Champions League and how they manage to slip through Manchester City in Semi final.
If we want to use their domestic leagues to contest for who is going to win this match, I will go with Real Madrid but if they are talking about their performance, Manchester City looks good and solid than Real Madrid and the payers look more hungrier than the any team in this league.
This season everything has changed so what happened last season no longer applies and cannot be used as a reference for what will happen again this season.
Manchester City and Real Madrid are the two top European teams at the moment and these two teams have been favorites since the start of the season to win the CL title this season so I don't think either team is underestimating its opponent.
Everyone's betting choices and favorites are definitely different from each other's point of view and that's only natural, but what is certain is that these two teams have almost the same percentage of being able to advance to the semifinals.