Starting with version 1.3, Android Studio will no longer support IDE-specific Gradle JVM argument settings. Gradle JVM settings need to be set in gradle.properties files. This c
Add this to your android clause in build.gradle:
compileOptions {
sourceCompatibility JavaVersion.VERSION_1_7
targetCompatibility JavaVersion.VERSION_1_7
}
Try changing your jvmargs to the following
org.gradle.jvmargs=-Xmx1024m -XX:MaxPermSize=512m -XX:+HeapDumpOnOutOfMemoryError -Dfile.encoding=UTF-8
Or something smaller -Xmx512m as your system does not have enough memory to create the object heap and thus the jvm.
You can also add the following option too:
org.gradle.daemon=true
For those on macosx I like to add the following
-Djava.awt.headless=true