Manuel Pellegrini's men realistically needed only a point to regain their title on Sunday and there was no repeat of the final-day drama two years ago, when City required a last-gasp goal from Sergio Aguero to become English champions for the first time in 44 years.
Allardyce had stated that West Ham were plotting to ruin the City party, but they were outclassed in a one-sided clash at the Etihad Stadium.
Samir Nasri opened the scoring six minutes before half-time and captain Vincent Kompany eased the nerves with a second goal early in the second half, as West Ham failed to live with Pellegrini's side.
Allardyce pointed to Nasri's strike as the pivotal moment in the match and the former Blackburn Rovers boss was frustrated that goalkeeper Adrian was unable to keep out the France midfielder's strike from 20 yards out.
But the West Ham boss believes City deserved their second title in three years.
He said: "We tried to get out and play on the counter-attack, which is the only way you can really play against Manchester City on their home ground based on the quality of their players.
"The sickener for me was letting in that goal just before half-time. I thought that the shot should have been saved by Adrian, sadly he didn't get the hand on it that he would have done normally.
"I've not qualms with the result, they are a fantastic team.
"I think they're head and shoulders above everybody else because one: they're top of the Premier League and two: because they've got the best squad.
"Considering they've won the Premier League and competed in all four competitions to the maximum level that they could. They're the best squad and best team in the league at this moment in time."
