The English club has been transformed over the past six or so years following the takeover by Sheikh Mansour and his Abu Dhabi United group, now known as City Football Group, back in 2008.
Since then, City have won two Premier League titles, the FA Cup and the League Cup while establishing themselves in the Champions League and former Tottenham midfielder Modric feels this type of success will remain at the Etihad Stadium for the foreseeable future.
"I used to play against City a lot and down the years they changed a lot," he told reporters in Melbourne ahead of Friday's International Champions Cup clash between the two sides.
"They have new owners and they are investing a lot of money in their club. They have had success in England and I'm sure it will carry on into the future with this investment."