Depends on your belief. There is such thing as draconic wicca, which involves dragons, fairies are believed to the essences of nature, mermaids exist such as the voodoo goddess la sirene, I've never met elves, I know that there are earth fairies who are called gnomes, though I'm not sure about dwarves. I've worked with most of these beings, except for elves and dwarves. If you mean real as in if they exist or not, that would depend on your belief, if you say call upon the fairies to help and you your self don't believe in them, they're not going to help you.
Just to elaborate a bit, such creatures are considered supernatural, meaning 'above' or 'beyond' nature. In essence, as Kaos said they exist on a more intangible level such as the astral or other non-physical planes. The mechanics behind this are, of course, up for interpretation.
For some, they exist as thought-forms. In other words, images and ideas that we have made up ourselves and imagine as if they are real, giving names and qualities to different energies and aspects of nature, natural forces, or human traits and qualities. In essence treating them as symbols of particular ideas or traits that a person might want to call on within themselves.
Others treat them as living entities that may- or may not- have existed at one time in a more physical level however now have separated themselves from physical levels of reality. In old lore and stories it would be called the farie kingdoms, dreamtime, etc. And would usually be accessed through archways or other 'tweens like literal doors, cave entrys, bridges, meeting the horizon, fog/mist, and the like. And while they primarily exist on this alternate level, they might sometimes still come to the physical in a hidden or disguised way to influence places or people. (In the case of Fae, usually though mischief. LOL)
Those of a more modern-spiritual/new-age bent see them in a variety of lights. Some see them as beings that exist on a different but similar plane to earth, or an alternate dimension or stellar location (*cough*lizziesandthepleiades*cough*) others see them as spiritual entities who have always existed outside of the physical, and instead on a more spiritual level, like the astral or some higher energetic vibration, similar to the astral plane, spirit plane, etc. Many of them are seen as ascended masters, guides, or guardians. Especially among the more primally-connected or potent beings like Dragons, higher orders of fae, elementals, etc.
Yes! Well it depends on your own beliefs. Do you believe in them? For me, i believe in them, Spiritual/Magical Creatures are usually what I focus on in my path and through my path of Witchcraft and Paganism. I believe i have even seen them and had many encounters with them, but of course, you must figure out what you believe yourself. What type of Witchcraft do you practice? What spells do you perform? There are many spells about Magical Creatures, maybe try one. Of course if you are a beginner DO be careful, and sometimes spells wont always work for you when you are starting out new, but I can always help you out with some information if you want to have a read and see for yourself what you think.
Yes spiritual creatures are real,but like all things magical they can only appear or manifest their power to those who believe in them....in Africa where most believe in ethereal or astral beings such as mermaids,they have many times reported sightings of these entities on seas or lakes..if you desire to have a better understanding of such topics I would recommend you to read:Isis unveiled by madame Blavatsky. You can Google it.
All magical creatures are real, the only way for them to exist is to have people belive, if everyone stopped beliveing in magik it would all dissapear. as long as someone belives there will always be magik