Like other answers I set org.gradle.java.home property in gradle.properties file. But path with \ separators did not work (building on windows 10):
Java home supplied via 'org.gradle.java.home' is invalid. Invalid directory: C:Program FilesJavajdk1.8.0_65
So instead of
org.gradle.java.home=C:\Program Files\Java\jdk1.8.0_65
i had to use
org.gradle.java.home=C:/Program Files/Java/jdk1.8.0_65
then the build was successful
Problem is that project is build with JRE instead of JDK and since I was building it from eclipse this also worked: