As you would expect Xcode runs great, apparently faster than any Intel MacBook. Android Studio runs under Rosetta 2 (well the JVM does), the issue is you cannot run the Android simulator so you would need to debug on a physical device.
If you are doing web or backend development there are some issues too. The brew package manager does not currently work. The bigger issue though may be Docker and Kubernetes. They do not run on M1 Macs.