LaLiga titleholders Madrid welcome leaders Barca to the Santiago Bernabeu, with the Spanish and European champions 11 points adrift in fourth position.
Madrid, however, do have a match in hand following their successful Club World Cup campaign.
And Emery – who will attend the blockbuster fixture as he prepares for PSG's Champions League last-16 tie against Madrid – believes home-ground advantage makes Zinedine Zidane's men favourites.
"They are many points behind, but on Saturday if one team is favourite to win then it should be Real Madrid, as they're at home," Emery told Marca.
"[Home advantage] is important in a Clasico.
"Furthermore, Real Madrid are playing to stay alive in La Liga.
"They need the three points and home advantage is quite important. But you cannot rule out Atletico Madrid for LaLiga either."
After reigning supreme in La Liga and the Champions League in 2016-17, Madrid have failed to reach those lofty heights this season – struggling for consistency.
But Emery said: "The fact they've not started well in La Liga could mean something for the second half of the season.
"When the most important matches come along, I am convinced they'll be good.
"Real Madrid still have a really good team.
"They have won the last two Champions League titles and a LaLiga title."