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Error occurred in deployment step ‘Install app for SharePoint’: Sideloading of apps is not enabled on this site. – SharePoint 2013

When you try creating a SharePoint 2013 App project in a SharePoint hosted model and when you try to deploy the solution, you get an error “Error occurred in deployment step ‘Install app for SharePoint’: Sideloading of apps is not enabled on this site.”

The issue for me was I did not create an app catalog for the webapplication I was trying to deploy. Go to central Administration page and create an app catalog for the webapplication and once the app catalog is created, retry the deploy and now this worked as expected.