Adding to the answer above, since TLS 1.1 and 1.2 are disabled by default on JDK 7, if you do not want to use JDK 8, you can also try changing the last line of dev_appserver.sh with the following flags:
exec "${RUN_JAVA}" "${SCRIPT_NAME}" \ -Ddeployment.security.TLSv1.1=true -Ddeployment.security.TLSv1.2=true -ea -cp "${JAR_FILE}" \ com.google.appengine.tools.KickStart \ com.google.appengine.tools.development.DevAppServerMain " $@ "
Or dev_appserver.cmd on Windows:
java -Ddeployment.security.TLSv1.1=true -Ddeployment.security.TLSv1.2=true -cp "%~dp0\..\lib\appengine-tools-api.jar" ^ com.google.appengine.tools.KickStart ^ com.google.appengine.tools.development.DevAppServerMain %*
source share