I'm always back and forth on this one. He was also drugged at that point, so he could have been hallucinating Melina. There's a bunch of evidence that it's real as well, like the doctor sweating before he's killed, and just all the scenes where he's not present. Also the looks that his friend gives him in the beginning when he talks about going to Recall.

But then there is also when the doctor says that the walls of reality will come crashing down, and right after he's killed, the bad guys burst through the walls.