I do both...
I use both real world langages and created languages to enhance the flavor of my world. I've put a bit of thought into how different languages would have developed and matured as the civilizations and ethnic groups of my world have developed and interacted.
I've actually created one language, called Ehryssan. It's the language of the desert people of Ehryss - named for the goddess of life IMC. It has its own grammer, alphabet, and vocabulary (though that's a bit limited at the moment). I tried to give it a slightly arabic "flavor," but it has no real association with that language at all.
If you'd like a sample, here's the invocation that starts every Ehryssan prayer:
Al alia rys, etu ka shivuun et is ka shivuun, etu ka rovuun et is ka rovuun, mulal etu ka dula is vatrat...
The rough translation into English is:
O, sacred mother, your tears are my tears, your blood is my blood, in your name I pray...
Here's a phrase by phrase explanation of the language:
Al alia rys... "Al" is the only article in the language, and is used here in place of the "O." "Alia" means mother, and "rys" means sacred or holy. In Ehryssan, adjectives follow the subject, unless they are combined into one word, which you'll see later.
...etu ka shivuun et is ka shivuun... "Etu" is equivalent to the pronoun "you," and "ka" is the infinative of the verb "to have." In Ehryssan, there are no posessive forms of pronouns. Instead, you follow the pronoun with "ka" to indicate posession. "Shivuun" is a compound word composed of "shi," meaning "eye" and "vuun," meaning "water." Together, they mean "tear." This is an example of where adjectives preceed the word being modified.
"Et" is the infinitive of the verb "to be," and when used in this context, takes on the present tense. The Ehryssan language only has three tenses - all else is implied. To signify past tense, add "a" to the end of the verb. To signify future tense, add "i" to the end. The present tense is indicated by the infinitive form.
"Is" is the pronoun equivalent to "I." In this case, "is ka" means "my."
...etu ka rovuun et is ka rovuun... "Rovuun" is another compound word, with "ro" meaning red. Together with "vuun," it means "blood." Incidently, vowels in Ehryssan can have long and short sounds. The long sounds are written as double vowels, so the double "u" in "vuun" is long.
...mulal etu ka dula is vatrat... "Mulal" literally means "to talk" and "dula" means "name," so "mulal etu ka dula" means, literally, "to talk of your name." "Vatrat" is the infinitive of "to pray."
So... umm... there you go!
-Dave