My neighbor just had new beautiful tile installed but I found out it's grouted Vinyl tiles.

Luxury vinyl tiles have the look of fine porcelain or natural stone tiles.  They may be grouted to look like more traditional ceramic tile floors.  They are extremely resilient, warmer and generally softer underfoot.  They come in a variety of colors and patterns from sleek contemporary to stone traditional.  Sizes match the more popular larger format and rectangular shapes.  The surface is covered usually with a vinyl, making it easier to maintain, and aids in scratch and stain resistance.  Subfloor preparation is similar to that of traditional ceramic or porcelain tiles, but being a thinner product it does not raise the finished floor as much.  Prices may vary but generally fall in line with moderately priced floor tiles.  Products may have added features such as stain resistant and antibacterial properties.  The look is the same as a normal ceramic floor with the added benefits of the vinyl.  I have actually been in homes where the client was not aware that they had luxury vinyl tiles, assuming they had porcelain.