Magical realism has a cultural connection to South American culture. The classic example is 100 Years of Solitude and the speculative element is tonal rather than specific (eg spilt blood mysteriously running in a certain direction). It's unlikely you are writing MR and I'd be extremely wary of claiming that tag.
Urban fantasy is usually set specifically in the city; contemporary fantasy doesn't have to be. Urban fantasy has evolved--it used to be stuff like American Gods, but now has an association with pulp vampires which is unfairly narrow.
If you write outside of pulp, and/or your setting is broader than a city, you'll be put into contemporary fantasy. That said, a lot of authors and agents are pitching what would have once been standard UF as contemporary fantasy, because the label has such a stigma attached to it at the moment.
If you are writing urban or contemporary fantasy where the speculative element is not the focus and/or the story has a literary or mainstream bent, you'll be classed as speculative fiction, literary, or mainstream, depending on the specifics of the book and how your publisher chooses to position you.
Source: contemporary fantasy is my genre and positioning discussions have been happening all year. Fwiw I'm being positioned as "mainstream speculative fiction" because there is a strong mainstream tilt (thriller structure) to the story, and the speculative element is out of focus.
TBE is set in the real world, a slightly alternate 90s Britain. There is no magic, or magic systems, or wider fantasy elements, just some slightly supernatural people who eat books and a lot of tonal references to fairytales.