Start Android Studio, close any open project.
On the right side, click on Configure -> Settings.
On the left side, in Compiler->Gradle set VM Options to "-Xmx512m" (without quotes)
Press OK, then create a project. May be it will work

Start Android Studio, close any open project.
On the right side, click on Configure -> Settings.
On the left side, in Compiler->Gradle set VM Options to "-Xmx512m" (without quotes)
Press OK, then create a project. Worked for me.