Xamarin Forms 2.0 and Visual Studio

I have a project that I am trying to upgrade to the newest version of Xamarin Forms (2.0).

After upgrading I loose all Xamarin.Forms functionality in my app. For instance, DependencyService is not defined, any xaml elements do not 'exist in the current context' and ContentPage base class methods are not defined. These problems do not exist for previous version of Xamarin.Forms and do not appear when using Xamarin.Studio. I have tried creating a fresh new 'hello world' application with a single content page, the problems appear there as well.

please advise.