The best way to achieve that realism is through portraying realistic characters. That includes characters others find difficult or impossible to get on with. It also includes showing relationships between characters - from working ones to romantic to friendships and how all of these change over time (sometimes for the better, sometimes not). There also needs to be something about the setting which is easy to identify with and that can be anything from power mad rulers to home settings not dissimilar to our own.
Also if magic is used all the time, where is the story? One blast from a wand, problem solved, but not much to read about! So it pays to have limits to what magic can do so your characters are forced to have other ways to resolve their issues. And that's where the drama and tension comes in and, hey presto, a story that will hopefully keep readers gripped, really wanting to find out what happens next.