And he admits his side will have to quickly get over their heartbreak if they are to hold off Liverpool in the race for the Premier League title.
Guardiola has been left to hope there is no hangover after losing 3-1 in the Bernabeu, which sealed a 6-5 aggregate defeat.
The Premier League champions looked on course to reach a second successive final to make it an all-English showdown with Liverpool in Paris on May 28.
But two goals from Rodrygo in the 90th and 91st minutes saw Real overturn Riyad Mahrez’s opener and level the tie on aggregate. Karim Benzema scored an extra time penalty to clinch an incredible comeback in Madrid.
Guardiola said: “We didn’t suffer much, but we didn’t play our best. But it is normal in a semi-final – players feel the pressure.
“We were close, but football is unpredictable. Sometimes it is like this and you have to accept it. They are sad. They were close to reaching the final of the Champions League.
“This will have a positive impact on the Real players. On us? I don’t know. We need time now. We have to do it with our people. We need time to process that and come back with our people at home for the last four games. The players are sad.”
It is a latest setback in Europe for Guardiola, who is desperate to win the Champions League with City.
“I had defeats in the Champions League, at Barcelona and we could not reach the final, but there’s no doubt it’s hard for us,” he said.
“It is simple. In the first half we did not have a game, we were not good enough. But we did not suffer much. After we scored the goal we were better. We found our tempo and our game and the players were comfortable.
“It is not like in the last 10 minutes they attack and attack and you suffer. It didn’t happen. They put a lot of players in the box, with [Eder] Militao, Rodrygo, Vinicius, Benzema and they put in crosses and scored two goals.”
Carlo Ancelotti claimed history was on Real’s side looked ahead to a showdown with Liverpool at the Parc des Princes.
“I cannot say we are used to living this kind if life, but what happened tonight it happened against Chelsea and also against PSG,” stated the Italian.
“If you have to say why, it is the history of this club that helps us to keep going when it seems that we are gone. I am happy to be there in the final, in Paris against another great rival. We are used to it. It will be a fantastic game for football.”