SharePoint 2013 : Cannot connect to the targeted site.

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While creating a new development environment I ran into the following error:

Cannot connect to the targeted site. This error can occur if the specified site is not hosted on the local system. SharePoint solutions work only with locally-installed versions of SharePoint Foundation or SharePoint Server. Remote development is supported only for apps for SharePoint 2013.

Usually this error pops us if you did the following:

Edit host file

127.0.0.1                  urlofmywebapp

However, as my development machine is running in my own domain, my hostfile is empty and the site is accessed through the DNS. The fix is however the same. Adding the IP of the server to the host file did the trick.

10.0.0.100                urlofmywebapp

This is supposed to get fixed in a future version of the Office Developer tools.