In the meantime, if a fall off in cash flow to under-capitalized developers results in a consolidation of the sector, that will be healthy in the long run. 

Given that their financial distress may be very immediate this is where a shakeout is most likely. However, the market for completed property in many locations is severely undersupplied and will not suffer much - prices for villas are still going up, and even in the middle of last week's crisis, completed properties were selling in Dubai, although at a slower pace than previously.