I am going to go on a limb and say that Real Madrid will not win UCL this season as well. They are not going ot be as bad as last year, because they had many injuries last year which caused them to be worse, they will do better at group stages at least, and depending on who they face afterwards, I bet they can go even further, but they won't win.
Because every season, the best team in the world usually ends up winning, and that means, even if you are a lucky team with a good draw luck, facing easier opponents and go to finals, you will still lose at finals because the best team wins. Rare cases of smaller teams winning, but that's very rare. And at this moment Real Madrid is not the best team and PSG looks like the better team, even few others.
I think Real Madrid will have a very hard time winning the trophy this year. It seems a bit strange to me. The team, which is a prime contender every season, is in a much better position now. It could improve. New manager Xabi Alonso could create a new transformation. His first test against PSG was a bit difficult, but they still have a long way to go.
The team's problem isn't squad depth or any other shortcomings. There's no unity within the team; their performance was completely disjointed. This was the case last season and in the current tournament.
I believe that Xabi Alonso will be able to fix whatever is the problem in Real Madrid between the players. He will strengthen the club and close the bond between the players. He just took over the club from the former manager and needs time to work on the players. Winning UCL next season might not be possible for Real Madrid, but the team performance will be far better than their current performance.