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.
Manchester City is indeed a candidate to win the title this season, this cannot be separated from their strength or stability, of course that is a fairly accurate assessment to say that they are very strong this season. Of course it is better not to think that other teams are weak because other teams also have many quality players in their teams. So in the quarter-finals we will see who is the best between Manchester City and Real Madrid because these two teams will face each other. From my observations, maybe one of the teams that will succeed in this match will be the strongest to win the title.
Arsenal too, they are still favorites this season, regardless of mentality or strength, of course they have become more confident this season. Two teams from the Premier League are very strong in the Champions League this season, be it Arsenal or Manchester City, they have a target of becoming champions. So on the other hand, can teams from other leagues thwart Manchester City mission this season or will other teams bring home trophies to their leagues like Ligue 1 or Bundesliga.