The Croatian midfielder spent the last five years at Stamford Bridge winning the Champions League and making 221 appearances for the club.
The former Real Madrid midfielder penned a four-year contract with the Cityzens and was brought in to replace Ilkay Gundogan who joined Barcelona on a free transfer this summer.
Man City paid £30m for his services as Kovacic entered the final year of his Chelsea contract.
Ferdinand said: “Man City, Kovacic is a great signing. Obviously they’ve lost Gundogan, the captain, but I think Kovacic is a shrewd signing, at that price as well.
“I think he was £30m and in the current market, that’s huge business, great business. He’s full of experience, won the biggest trophies, and a different player to what they have got in that area.
“He can travel with the ball through the lines, so I think he’s a good signing. I think they’ll go again, City, somewhere else [in the squad].”
See More: