How to add Android Support Repository to Android Studio?

You are probably hit by this bug which prevents the Android Gradle Plugin from automatically adding the “Android Support Repository” to the list of Gradle repositories. The work-around, as mentioned in the bug report, is to explicitly add the m2repository directory as a local Maven directory in the top-level build.gradle file as follows:

allprojects {
    repositories {
        // Work around https://code.google.com/p/android/issues/detail?id=69270.
        def androidHome = System.getenv("ANDROID_HOME")
        maven {
            url "$androidHome/extras/android/m2repository/"
        }
    }
}